YearReal GDP (in billions of 2005 Dollars)Population (in Millions of People)1999$10,780279.632000$11,226282.4 Refer to Table 9.1. What was real GDP per capita in 2000?

If a firm's use of labor obeys the law of diminishing returns, then:

a. it does not have enough time to hire or fire workers. b. doubling the number of workers causes the firm's output to also double. c. its marginal costs must be falling. d. hiring additional workers adds less and less additional output.

In the classical model, we assume there is no ongoing inflation, so there is no need to distinguish between the nominal interest rate and the real interest rate

a. True b. False